New Hedge Funds Raised Less Money in 2006: 86 Largest Funds Raised $31B
New
hedge funds worldwide raised less money in 2006, on the collapse of
Amaranth Advisors, which lost about $6.6 billion in two weeks, the largest
hedge-fund collapse ever.
The 86 largest new hedge funds raised $31 billion in 2006, compared with 82 funds raising $34 billion in 2005, and 81 funds and $40 billion in 2004, according to data from HedgeFund Intelligence's Absolute Returns magazine, reports Bloomberg.
The biggest new hedge fund last year was Convexity Capital Management LP (started by Jack Meyer after leaving Harvard University's endowment), which raised $6.3 billion, a record for a new fund.
A record $126.5 billion new money flowed into the hedge fund industry last year, nearly tripling the $46.9 billion in new money they attracted in 2005, according to Hedge Fund Research, which tracks more than 10,500 hedge funds. Hedge funds total assets under management soared 29% in 2006 to $1.4 trillion.
Sources/Related: New Hedge Funds Raised Less Money in 2006 on Amaranth - Bloomberg
